The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-14
A RICE COMPACT.
Combination Made by Some New Or
leans MillerS.
From the Neto Orleans Times Democrat.

FROM TIE Netc orleans Times DenlOCTut.
That combination of rice millers in the
city of New Orleans had been formed was
given out in commercial circles yesterday.
The movement was started about three
months ago, but was not made public. There
was general war among the millers last
year, and the result was according to the
statement of a large miller, mo one made
any money and in some instances lost.
With view to self-protection we have
come together, deeming it useless to inaugu-
rate another war, which can only result in
disaster"
The rice when taken from the field is sent
to the commission merchants, who have
made advances thereon. The planters who
have not received advances on their crop
generally hold the rice on the plantation,
and wait fof buyers When the rice reaches
the city it is placed in the hands of the
broker, who puts 1t on the market for sale.
The millers buy it. Under the combina-
ton it is proposed that the millers shall no
longer appear as buyers, but that a man be
selected by the combination, whose duty it
shall be to purchase the rice desired by each
mill in the compact.
THE COMBINATION.
"Who are in the combination"
Perseverance, two mills, owned by Louis
Reuch; Southern. Warner a. Roder: Louisi-
.ana, Philip Hoelzel, Jr., & Co; Hope, Reuch
e Hayward; Lanaux Mill, G. A. Lanaux;
Enterprise, Larendon q Allen; Daniels Il
Lyons Mill; st. Louis Mill, Z. Daboval; Or
leans, J. Forster
THE mills that are not in the combination
are: Forester Mill, Ernest & Co. Planters
Rice Mill, j. BUTLER; Crescent City Rice Mill
A. Socola; David Mill. Joseph David; Levy
Mill, Isaac Levy. In the mills outside Of
the combination more capital is represented
than in the combination There are three
mills on the lower coast and two on the
upper coast, and two mills on Bayou La
fourche."
In speaking of the new crop, miller
said:
The new rice that. is coming in is not
sufficient TO start the mills The bulk of
the rice received duAng the present week is
either green or wet, on account of the fire.
quent showers of rain. Several of the mills
are working old stock which is preferred to
the new rice. What the rice needs to-day
to make it marketable is dry weather"
The object of the combination" said a
prominent miller, not in the combination,
us that last year the miliers made 70
money, because the receivers did not give
them
FAIR SHOW.
grinding them down to margin of 40c.
Suppose pay So for rough rice; it is sold
at IS 40. Now, it is entirely out of the
question for IA man to mill at 40c margin,
when breakdOyns, wear and tear is consid-
cred. If this combination will work on
75c margin, which they propose to do, no
miller outside of the combination can com
pete with them, because that margin is Just
as small as any mill can work on make re-
pairs and living.
Three years ago a combination was
formed under the name of the Millers' As
socation, and the margin then was fixed at
81 %, and profit was maze. The combi-
nation did not last very long, because the
millers were only allowed to buy rice on
that margin, but third parties came in and
bought up the rice at an advance of DC, at
the instance of certain millers. to whom it
was transferred, and when this was found
out the combination bursted
THE planters and receivers of rice are
alarmed There need be no fear of this, for
the mills outside the combination cannot
work at a lower rate than the combination
price, which has been fixed at Zoe margin
THE GREAT OBJECTION
to the continuation by those outside of it is
that one man is to be made Judge; he is
to have the power to buy the rice for all the
mills. Now, that is great power to give
a man who will have to determine what
each bag of rice will make when clean, and
if he don't judge well he will get old Harry
To be safe he will make an inside margin,
and this is what alarms the planter and re-
Ceiver, and the outside millers say they
don't want a man to buy their rice-'I want
TO buy my own goods
The margin to-day is not over 75c. to the
miller, and the combination propose to fix
it at 15c., and if they do, it will be mpos-
sible for outside mills to go beneath that
figure.
1.-THE planter and receiver holds the power
because the clean rice dealer notes the rough
rice market, and if rough rice is sold to-day
at sc. per pound in the rough, the receiver
naturally the next day, when offered for
sale, will try to buy it at 3s4c per pound
clean, which Is 75c. margin
IF any miller will sell his rice for less
than that price of rough rice will be re
duced the next day. The clean rice shipper
is a keen observer of the rough rice market
The miller is the middle man; if the planter
sells a barrel of rice at So in the rough, that
sale is recorded ON Change; the next day
the clean rice dealer will offer the miller the
outside price, So rs, for that ricen
In conclusion the gentleman said:
Il am not in the combination and do not
intend to go into it, and assure you that 10
miller can make n living if he works for less
than zoe. per barrel. A mill can be put in
every sugar house and town in the rice dis
trict and they cannot mill any cheaper than
the combination propose, and if they carry
out this proposition to work on a 75c mar
gin the outside mills will buy the rice on a
75c. margin, but they will not permit any
man to buy the rice for Them